T-Mobile Germany ordered to allow iPhone use on rival carriers

A court order handed down Monday against Deutsche Telekom mobile arm T-Mobile demands that iPhone be sold in Germany unlocked and without a two-year contract, the Wall Street Journal clarifies.

The German carrier has been given to the close of business on Wednesday to alter its marketing(subscription required) of the Apple handset to reflect the Court's demands. The change in conditions will reportedly be valid until another hearing before a Hamburg court, which is expected in two weeks.

For its part, however, T-Mobile is standing firm, claiming that its marketing model for the iPhone is correct. In a statement Tuesday, it said that sales of the Apple handset are continuing and that it reserves the right to claim damages from Vodafone.

As was reported yesterday, T-Mobile rival Vodafone Deutschland filed for the motion because it wants the German court to review T-Mobile's exclusive marketing rights to the iPhone in Germany, which it believes are in breach of local German laws.

"We're not taking any plans to replicate these actions anywhere else, or in the U.K.," a Vodafone spokesman told the Journal. "It's a different regulatory environment."

Specifically, Vodafone is objecting to the iPhone being restricted for use only on T-Mobile networks and also questions T-Mobile's fare packages for the iPhone, which are limited to just three.

Vodafone Deutschland chief executive Friedrich Joussen was quoted on Monday as saying his firm's goal was not to prevent sales of the device but rather to allow for consumers to purchase iPhones without restrictions.

"We want the iPhone to be available to everyone without being tied to a contract," he said.

Although mobile carriers have historically declined to share service revenues with handset makers, the allure of iPhone has allowed Apple to successfully do just that with AT&T Inc. in the U.S., Telefonica's O2 in the U.K. and Deutsche Telekom's T-Mobile in Germany — garnering what is believed to be an approximate 10 percent share of service revenues in each case.

The Journal notes that Apple tried to secure a similar exclusive deal in France with France Telecom SA's mobile operator Orange, but due to French consumer law other telecommunications companies have been selling the iPhone, offering contracts with rival operators Bouygues Telecom, the telecom division of Bouygues SA, and Virgin Mobile.

In its statement Tuesday, T-Mobile Deutschland said it will oppose the preliminary injunction filed by Vodafone.

Maybe Apple can change its marketing to 'enhanced usage with <name of provider>'.

The truth is that I would like to see things like visual voice mail be submitted as an extention to GSM. Apple is seeming too much like the negative side of Microsoft, in this case. Apple's attitude in this case may make more European countries bring in laws with regards to exclusivity contracts and cellphones.

The fact T-Mobile is a subsidary of an ex state telecom company (Deutsche Telecom) is likely to bring more attention to the case.

No big deal, just charge $1000 for the unlocked one. How much are they charging for the unlocked one in France?

Apple needs to take their head out of their ass. The iPod wouldn't have been the success it is with this lack of vision. What's going on in France exactly? If France can get it opened up, did they? Germany may very well too. I hope this is the start of a domino effect.

Apple needs to take their head out of their ass. The iPod wouldn't have been the success it is with this lack of vision. What's going on in France exactly? If France can get it opened up, did they? Germany may very well too. I hope this is the start of a domino effect.

Apple is making about $600 profit per phone including the $18/month they get from the carrier - when sales drop they will drop prices, but not before sales start to drop, that would be stupid. Actually, setting the unlocked phone price at $800 or $900 would probably give them the same total margin.

Where did you get that from? We're talking abut Germany (and France, the U.K. and the U.S.) Totally bogus statement. How about something (anything) to back that up? There is no "reprehensible greed" here - just idiots like you making up facts to suit an agenda.

Nice to see Apples reprehensible greed being given the short shrift it deserves. Apple shareholders should seriously question Apples marketing strategy in Europe.

By far the largest segment of the market is pre-paid. Contracts are on the wane. Why on earth does Apple think it can maximise profits by catering to the smallest market segment which is shrinking?

Don't you think Apple will change when they see all those contracts waning and they start loosing money? Or, maybe, they will bring back contracts in a big way... The iphone is a market changer.

Quote:

Originally Posted by e1618978

Apple is making about $600 profit per phone including the $18/month they get from the carrier - when sales drop they will drop prices, but not before sales start to drop, that would be stupid. Actually, setting the unlocked phone price at $800 or $900 would probably give them the same total margin.

It's nice that a company like Vodaphone can use the law to try to harm another company, rather than just try to compete.

Agreed.

It's not like people have a 'right' to buy the iPhone at all.

If I buy an XBOX the only place I can get XBOX live is from MS, so that is the same model.

I really don't see how you can force a company to 'sell' something if they don't want to.
If it has to be made availble unlocked then fine, just price it so that nobody will buy it.
iPhones can still only be sold though Apple or T-Mobile stores, Vodafone will not get the iPhone from Apple to sell themselves.

There are many handsets released in the UK which are availble on one network only.

Why on earth does Apple think it can maximise profits by catering to the smallest market segment which is shrinking?

Man you really have to start thinking !
The Mobile- Operators are the ones that think the world belongs to them ,not apple.
The thing is - without apple interfering , the quality of the service wouldn't be that good.. EVEN if it now IS not good ..it would be even worse . I guess you could imagine , so IMAGINE how MUCH the precious T-Mobile would charge you for nonstop i-net ... video downloads etc.. do you have any idea how much- A FORTUNE .
So instead of blaming Apple guys , who actually CAN deal with such EGO-firms as every single Mobile Operator worldwide is ...do remember all the times ,when you wanted to be able to change something about the Operators but instead you felt so insignificant part of the universe.
have fun !